Aid and Abetz: Coalition defends taxpayer funding of Cadbury

National political reporter

The then opposition leader Tony Abbott is presented with ingredients to make his own 'Marvellous Creations' block during his visit to the Cadbury factory in Hobart last year. Photo: Alex Ellinghausen

Employment Minister Eric Abetz has defended the Coalition's decision to provide chocolate company Cadbury with $16 million of taxpayers' money in the wake of its rejection of SPC Ardmona's bid for government assistance, arguing the Cadbury funds will be good for regional tourism in Tasmania.

Last week, after a meeting of the federal cabinet, Prime Minister Tony Abbott announced his government would not provide $25 million to SPC, reasoning that the business should be responsible for its own "restructure". This was despite Labor, unions and local Liberal member Sharman Stone arguing that without government help, the fruit grower would not survive, with devastating effects for the north-east Victorian region.

On Sunday, Senator Abetz said that it was wrong to make comparisons between the government's pledge to support Cadbury - in his home state of Tasmania - and its tough love approach to SPC.

"Can I say, it's not a fair comparison," he told ABC's Insiders program.

Advertisement

He explained that the government had announced the $16 million for Cadbury during the federal election campaign to help fund tours of the chocolate factory and in turn, generate regional tourism.

He said the tours used to be a "drawcard" for the state, which had a "shot" economy.

"That was seen as a reasonable endeavour by the federal government."

Senator Abetz added that the funds would also create another 200 factory jobs and help the local dairy industry.

"So overall a very good package, but in circumstances where the emphasis was on the regional tourism aspect, which all governments have engaged in and which makes it substantially different to the SPC Ardmona situation," he said.

Labor frontbencher Senator Wong argued on Sunday that the $25 million sought by SPC would have provided job security and helped the struggling economy in the Shepparton region. "You don't have governments as a matter of course simply propping up business, but there are occasions when it's important for government to work in partnership with particular firms," she told Sky News.

In a statement, Australian Council of Trade Unions secretary Dave Oliver again attacked the Coalition's SPC decision.

“This will have a devastating impact on Shepparton and on the fruit processing industry; an unacceptable failure of foresight and wisdom from the Abbott Government," he said.

"It should be noted that Mr Abbott was more than happy to hand over $16 million to foreign owned Cadbury in the marginal Tasmanian seat of Denison prior to the election but has now changed his tune."

Also on Sunday, when asked if the Coalition could still generate one million jobs within five years, as per its election pledge, Senator Abetz said, "we would like to think that we can do that".

The Employment Minister said the government was "doing everything possible" to achieve its target but needed the Labor Party and the Greens to back the scrapping of the carbon tax and mining tax.

Asked how many jobs the repeal of the taxes would create, Senator Abetz replied that the carbon tax was an "impost" that was hurting manufacturing.

"To remove it will ease the burden and assist job creation."

With AAP

123 comments

Cadbury is 100% foreign owned by the second largest confectionery maker in the world and SPC is Australian owned in a struggling part of regional Australia (ie not a capital city as per Hobart). This decision makes immense sense.

Commenter

wheretheresawill

Location

Balwyn

Date and time

February 02, 2014, 10:34AM

I thought SPC was owned by Coke?

Anyway, why is there not an option to loan money to these companies? Do it on condition that it gets paid back or maybe SPC can supply canned goods to the military?

Commenter

QED

Date and time

February 02, 2014, 11:10AM

SPC is owned by Coca Cola...

Commenter

bf

Location

sydney

Date and time

February 02, 2014, 11:17AM

Actually SPC is part of Coca Cola. They hardly need a handout, they're more like milking the teat that was the Labor welfare program.

Having said that there is no consistency between the Cadbury and SPC decisions. Maybe Abetz should have simply fessed up that the former was really an election handout. Although the line about tourism is a beauty.

The bold faced hypocrisy is only one of the things that isn't a surprise from this infantile bunch of visionless, anti employee, anti environment hacks. The May budget is going to be extremely revealing as to whatever passes for their views on Australian society. Will they reveal a hitherto missing in action understanding of the differences between a society and an economy? I won't be holding my breath for it, that's for sure. We can only look forward to more attacks on workers and blind, slavish devotion to the IPA and big business's interests. Maybe by next election the aspirational sheeple that voted for them will realise the error of their ways, having found themselves shorn at every turn.

Commenter

Warwick

Date and time

February 02, 2014, 11:24AM

Liberal policy.Only the wealthy are entitled to become wealthier. Workers must do more for less while the people earning the big bucks do less for more.What I can't understand is why the poorly paid and welfare recipients ever vote liberal. And the nationals better find a partner who will look after the rural community before they become obsolete.

Commenter

Ausnavy

Location

Wherethehellarewe?

Date and time

February 02, 2014, 11:35AM

Particularly just before a Tasmanian State Election. Not that that could possibly have anything to do with it!

Commenter

rext

Date and time

February 02, 2014, 11:41AM

Clearly the people in that electorate are ok to see SPC go so not sure what the fuss is - they voted for it. And they mustnt want the NBN either, throw em some wifi so they can at least get updates on stopping the boats, oh wait, they arent getting those either. Maybe this is just two word tonys way of creating the green army? ummmm... ahhhhh...

Commenter

harry

Location

melbourne

Date and time

February 02, 2014, 11:48AM

"... Cadbury - in his home state of Tasmania..." Well, duh, Abetz really must think we're mugs!